Tag: Saving

Saving Money: Building a Safety Net for Your Finances

It doesn’t matter how much you make. It matters how much you save. Financial advisors stress the importance of keeping a portion from your salary that will eventually be your safety blanket. Nowadays, people get lost in the façade of the extravagance despite not having financial resources to sustain it. Worse, these people occur liabilities that sunk them into debt and other obligations.

As flashy and Instagram-worthy as it may seem, people should start the habit of saving. If you want to secure your finances, saving is one of the most excellent solutions. But how do you get into the habit of saving? Here is our easy-to-follow guide:

Minimize Fastfood Cravings and Learn To Cook

One of the greatest money-wasters now is the habit of eating out. Yes, it can be convenient to drop by the nearest fast food and eat away but, it doesn’t fill you up. Not healthily, of course. If you want to save money, commit to a habit of cooking.

Learn a new recipe. You can type in a query on the internet on recipes that are nutritious, healthy, and cheap. You’ll find incredible discoveries!

Never Give in to the Temptation of Wanting

There’s a difference between wanting to purchase that dress, or needing to save for a new laptop. Yes, the dress can provide you with instant satisfaction. However, when you’re done splurging yourself with the immediate feeling of being able to wear the dress, it’s no longer useful.

The rule of the thumb suggests that you sleep over a purchase, especially if it isn’t included in your shopping list. Also, it would help to understand the value of delayed gratification. Delayed gratification is the act of sacrificing today for the pleasure of tomorrow.

Instead of giving in to the temptation of enjoying your money today, why not save up for bigger things in the future?

Don’t Succumb to Peer Pressure

It is crucial to take a stand regarding financial matters. Sometimes, the grandeur of having the newest gadgets or being able to dine in the most expensive restaurant can be overwhelming. But, if you are firm to your goals of saving, this shouldn’t affect you.

If at times you feel like giving in, always ask yourself whether you want or need it. Besides, you’re the one working hard to earn that cash. Wouldn’t it be a waste to let others’ opinions persuade you into buying an item you don’t need?

Look for Deals and Use that Coupon

Remember those tiny cut-outs that you keep in your wallet? Take a look at it right now and see the expiration date. Use these coupons on your next trip to the market. Watch out for deals in your local convenience store as this can help you save a significant amount of money.

Income Minus Savings is Expenses

Last but not least, the foolproof formula to save money is by following this mindset. Whenever payday comes, save at least 10% of it and deposit it to your bank. What’s left of your money is used to pay off bills, groceries, and utilities.

If your current paycheck couldn’t cover for your expenses, maybe you’re spending on unnecessary items. It would help to track your expenses but never lower your savings percentage. After assessing your expenditures and your current income couldn’t cover for it, maybe it’s time to hustle harder.

Always keep in mind that your finances are the result of your hard work. Don’t let it go to waste. Protect yourself by building a safety blanket and by drafting a monthly budget.

June 15, 2020
Smart Money Moves Before, During and After this Pandemic

Ever since the quarantine period has begun, many people suffered from the lack of economic resources and availability they obtain from their livelihoods and jobs. Others were fortunate to work despite the restrictions because their sector belongs to the essential goods and services.

From a statistical point of view, various reports and studies have shown that globally, 25 million jobs collapsed. Primarily, this number reflected those jobs that fall under the scheme of no work, no pay. As life for these individuals become a ticking time bomb, there are things we all can do to secure what financial resources we have left, and possibly save what we will gain as the GCQ allows movement and economic transactions.

Reduce Spending

As we were all sheltered and cooped up for two months or so, we can all agree that we have minimized our expenditures for fast food, transportation, and other immediate pleasures. However, this will affect the commodities’ prices as the economy went into a major halt. It’s safe to say that you can expect a percentage of price hike when the “new normal” comes in.

For our first smart move, minimize spending of unnecessary items such as take-outs, electrical expenditures, and online shopping. It can be tempting at times, but always remember, you have more important things to spend on. For food items, you can reduce spending by buying in bulk. Plan your meals in a week’s consumption or longer.

Spend Cash or Use Cashless Methods but Never Pay Through Credit Cards

Paying with cash makes you keen on budgeting restrictions. It makes you stick with your shopping lists and fearful of impulse expenses. As much as possible, bring only sufficient cash with you while you’re outside.

On the other hand, if you’re shopping and cashless platforms are available, it is better to pay electronically. As health experts would recommend, minimize transactions where possible virus transmission is present.

However, if you plan to use a credit card for the purchase, think twice before doing so. Shopping with your credit card is painful for your finances as you’re bound to pay for the interests later on.

Budget Every Home Aspect with the Family

As everyone is affected by this pandemic, it pays to budget all of your family needs in one basket. Ask each member of the house to prioritize their needs and list them down. Also, it would be beneficial for you to ask every member’s cooperation with your budgeting constraints for them to consider cheaper alternatives.

Save a Percentage of Your Income

If you are fortunate enough to start working after the quarantine period, now’s the time to start saving. Even if it’s a meager 10-peso coin or a 20-peso bill every day. The most important thing to note is that you’re saving.

Nobody knows how this pandemic will end or when everything will go back to the normal we once knew. By saving, you create a financial blanket that will save you a lot of headaches should expenditures bombard your way.

Final Thoughts

No doubt, having money in today’s setting is critical. As financial experts would always say, it doesn’t matter how much you earn; it matters on how you manage and save your earnings.

Photos: Pexels.com

June 1, 2020